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Should I stop my earlier term plan?

You can go for the new insurance plan if it is available cheap and it is offering you additional benefits

I have a term insurance cover -- HDFC Click to Protect (without add-ons)-- for ₹50 lakh till I am 55 years old. I bought it two years ago. I am paying a premium of ₹6,686 per annum. Recently, I checked HDFC Click to Protect Plus (without add-ons) term insurance for ₹50 lakh and found out that the premium was only ₹6,007. I have heard the premium will increase with age, but here it is cheaper by around ₹500. HDFC Life insurance says Click to Protect Plus covers all of Click to Protect and adds add-ons and increased age of coverage. Is it okay to close my previous policy and buy a new one? How to close the existing term insurance? Is it advisable to take this step?
- Vibhor

You can go for the new insurance plan if it is available cheap and it is offering you additional benefits. After that you can stop your previous policy. You just have to stop paying premiums on the earlier policy and it will automatically cease to provide the insurance cover. However, do not make this a habit. It might create a bad impression whenever you buy a new policy.

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